Pfizer Operation in Bangladesh

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Introduction:
We have selected pharmaceuticals industry to invest as a foreign company. Bangladeshi industry in this sector is quite developed. For the last ten years, Bangladesh is exporting medicine to various countries. The reason is that still now, the tax and restrictions of laws are not those much strict in this sector. Though these weaker restrictions are causing some problems, government is trying to help to develop this sector providing various supports. We have selected this industry because we have seen some opportunity in this sector to be invested. To be honest, Bangladesh is not a very investment friendly country. Many foreign companies and not agreed to invest here as there are so many problems like crooked authority, lack of resources, unstable political and economical situation are making things worse. Still we believe that in this sector, investment can be possible. The environment investigation:

Pfizer Inc. is the world’s most profitable privately funded research based biomedical organization. After its merger with Warner-Lambert in July 2000, Pfizer became the world’s largest pharmaceutical company. Pfizer has a valuable and resourceful R&D division, huge global sales, popular products which made this company profitable. The secret behind the success is that Pfizer follows some criteria in operation of the business. These are, * Maximizing near and long-term revenues.

* Establishing a lower and more flexible cost base somewhere in Asia. * Creating smaller, more focused and more accountable operating areas. * Engaging more productively with customers, patients, physicians and other collaborators. * Making Pfizer a great place to work.

By the end of the year 2007, Pfizer has changed the business process along with the change of global business climate. This company now operates in places there are less restrictions, less bureaucracy and less cost in operating. Pfizer has restructured their cost base to operate with flexibility. On the other hand, this company is currently simplifying the R&D division to create collaboration in all the research teams who are specialized in different sides to in crease productivity by using all the research team in working together in any given prioritized work base. The growth trend of the industry has a major impact on the firm’s international strategy. Pfizer is known as the parents of unorthodox and specialized products which fulfill special needs of some people. As the world market is changing, the strategy of this company has changes. In the last ten years, this company has made two acquisitions and two mergers with some popular and local companies which were making wide-ranging products with mass production in the market. As this company is now thinking of new innovations along with cost cutting and low cost base of production, it is true that this organization is going through the market trend. Political Analysis:

System of government:
Our government system is in a framework of a parliamentary representative democratic republic, whereby the Prime Minister of Bangladesh is the head of government, and of a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and parliament. The Constitution of Bangladesh was written in 1972 and has undergone fourteen amendments. Government policies:

* FDI Policy for Pharmaceuticals sector:
Some of the major incentives are tax exemptions for pharmaceuticals, import duty exemptions for export processing, an exemption of import duties for export oriented industries, and tax holidays for different industries. Double taxation can be avoided by foreign investors on the basis of bilateral agreements. Facilities for the full repatriation of invested capital, profit and dividend exist. An import duty, at the rate of 5 percent ad valorem, is payable on capital machinery and spares imported for initial installation. For 100 percent export...
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